A.M. Best Revises Outlooks to Stable for Bupa Insurance Company
The Credit Ratings (ratings) reflect Bupa Insurance Company’s balance sheet strength, which
The revision of the outlooks reflect continued volatility in operating performance as a result of Bupa Insurance Company’s evolving business model. Operating performance has fluctuated over the years, and underwriting losses have been reported in 2017 and through mid-2018. Underwriting results have been impacted negatively by higher utilization, higher cost claims and expenses, as well as lower-than-expected premium revenue. In addition, there has been a negative impact from the recent currency exchange rates fluctuations, especially as it relates to the Mexican peso where the majority of the premium is generated. Recent financial results were below the company’s expectations, and five-year average operating ratios also compare unfavorably with its peer composite. The limited business profile reflects Bupa Insurance Company’s membership decline, which has resulted from strategic changes in the business model and its impact on the overall operations.
The ratings affirmations recognize balance sheet strength derived from risk-adjusted capitalization at the strongest level, which benefits from a high quality investment portfolio.
This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and
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